Legal Longs 2026
Welcome to Legal Longs, a briefing on a relevant issue in our industry
Actively Managed Certificates: an overview
This note investigates the purposes of an Actively Managed Certificate (AMC), intended especially for those with the following questions:
- Do you want to be able to wrap your investment strategy in a listed, tradeable format, giving accessibility to a broader investor base?
- Are you wondering whether and AMC offers advantages over a UCITS or AIF structure?
- Are you an emerging manager who wants to move quickly while maintaining regulatory credibility?
Optimise your profitability with tax-efficient structures
Establishing an appropriate tax structure is fundamental to a business’s profitability and growth potential. Whether launching a new venture or restructuring an existing business, getting the tax framework right from the start saves money and creates flexibility for future development.
Our specialised tax team provides comprehensive advice to companies, shareholders, LLPs, and partners, ensuring your business structure works efficiently from both tax and commercial perspectives.
And we advise on tax-efficient reporting for your fund, looking at the UK’s Reporting Regime and the Investment Managers Exemption.
How to prepare your cryptoasset FCA application and how we got here
On 30 September, the FCA will open its doors to applications from firms that want to carry out cryptoasset regulated activities.
Getting to this point has taken us all down a long and winding road.
To help you understand where we are now, and how we got here, we have published a short booklet which describes the UK crypto landscape, looking at the legal and regulatory issues.
For applications, page 25 is the place to start reading. We will soon update the booklet with details on how to apply to help you begin preparing for the 30 September deadline and send this to all our readers.
If you have any questions, we’re here to help.
FCA Policy Statement PS26/7: progressing fund tokenisation
A summary and commentary
The FCA seems to be supportive of fund tokenisation, as seen in a policy statement of April 2026.
In this publication, we have set out a summary of PS26/7, the FCA’s Policy Statement on progressing fund tokenisation, published in April 2026.
The PS confirms final rules and guidance following CP25/28, and sets out the FCA’s near- and long-term roadmap for fund tokenisation in the UK.
We have structured this summary to follow PS26/7’s key chapters, highlighting the main policy decisions and areas of interest for firms.
FCA cryptoasset perimeter guidance under CP26/13: what it means for your firm
On 15 April 2026, the FCA published consultation paper CP26/13, setting out proposed perimeter guidance on the new regulated cryptoasset activities.
The consultation does not expand the regulatory perimeter — that has already been established by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (Cryptoasset Regulations 2026), which are expected to come into force on 25 October 2027.
Instead, it explains how the FCA expects firms to analyse their activities and determine whether FCA authorisation will be required under the new regime.
FCA review on managing risks from inactive appointed representatives
Are you a principal firm?
If so, read on and then let’s talk.
The FCA has published the findings from a review of how principal firms manage potential risks arising from inactive appointed representatives (ARs). The review sets out good practices and areas for improvement across four key themes: reporting of AR regulated revenue, engagement with inactive ARs, monitoring of consumer-facing materials, and the adequacy of AR agreements.
The FCA is clear in its findings that acting as a principal firm cannot be a passive role. Principals are responsible for the regulated activities of their ARs throughout the entirety of their relationship and the FCA expects them to demonstrate that responsibility through active oversight.
Operational resilience is the new alpha: the new prime brokerage landscape
In January 2026, Cummings Pepperdine wrote about the need to ensure that prime brokerage selection is compliant and gave tips on how to achieve this.
To follow up, this article by HedgeFacts builds on discussion around prime broker selection.
It considers how managers can operate effectively across multiple prime brokers and the increasing importance of operational resilience as prime brokerage models continue to evolve.
Want to set up a managed account?
Managed accounts offer investors an opportunity to invest in particular assets and particular strategies on a customised basis, while retaining control over their own assets.
The move to managed accounts has led to a rise in managed account platforms as a new investment structure, as the extra reporting and controls provided by the platforms address investor demands for flexibility.
In this note we look in more detail at managed accounts.
The UK’s new crypto legislation
How does it impact you?
On 4 February 2026, the UK’s crypto legislation was published.
This legislation establishes the regulatory regime for cryptoasset activities in the UK.
Discover what this means for your business in our breakdown of the legislation, which looks at the critical details you need to know.
How to select your prime broker
Are you:
- An AIFM facing 12-24 month onboarding delays that compromise your launch timeline?
- An AIFM struggling to access prime brokers that satisfy due diligence standards?
- An AIFM conducting assessments and finding gaps in your current prime broker arrangements?
- An AIFM in emerging or frontier markets unable to demonstrate adequate counterparty quality?
If so, read on and then let’s talk.
FCA consultation papers on cryptoassets
Summary of FCA CP25/40
On 16 December 2025, the FCA published its most comprehensive consultation papers on cryptoassets. There are:
- CP25/40: Regulating cryptoasset activities (trading platforms, intermediaries, lending, staking, DeFi);
- CP25/41: Admissions & disclosures and market abuse regime; and
- CP25/42: Prudential regime for cryptoasset firms.
To guide you through them we have set out a summary for each Consultation Paper in an easy to read format.
Here we explore what CP25/40 means for those involved in trading, exchanges, dealing, lending, staking and DeFi.
FCA consultation papers on cryptoassets
Summary of FCA CP25/41
On 16 December 2025, the FCA published its most comprehensive consultation papers on cryptoassets. There are:
- CP25/40: Regulating cryptoasset activities (trading platforms, intermediaries, lending, staking, DeFi);
- CP25/41: Admissions & disclosures and market abuse regime; and
- CP25/42: Prudential regime for cryptoasset firms.
To guide you through them we have set out a summary for each Consultation Paper in an easy to read format.
In this article we look at the proposed new rules on admission to exchanges and market abuse
FCA consultation papers on cryptoassets
Summary of FCA CP25/42
On 16 December 2025, the FCA published its most comprehensive consultation papers on cryptoassets. There are:
- CP25/40: Regulating cryptoasset activities (trading platforms, intermediaries, lending, staking, DeFi);
- CP25/41: Admissions & disclosures and market abuse regime; and
- CP25/42: Prudential regime for cryptoasset firms.
To guide you through them we have set out below a summary of each Consultation Paper in an easy to read format.
In this note we have set out a summary of the prudential requirements which will impact cryptoasset firms.
Want to set up your own investment management firm?
The decision to establish an investment management firm is a significant undertaking that requires careful consideration of regulatory, commercial, and operational factors. While the prospect of independence and the potential for enhanced profitability are attractive, setting up and running a successful investment management business demands substantial resources, expertise, and a clear strategic vision.
This guide sets out the key reasons why investment professionals choose to establish their own firms, the benefits and challenges involved, and the practical considerations that must be addressed. There are also sections on regulation, which are of course key.